Exercise $10-8$A $($Algo$)$ Determining the cash flow annuity with income tax considerations LO $10-2$

To open a new store, Franklin Tire Company plans to invest $$216,000$ in equipment expected to have a four$-$year useful life and no salvage value. Franklin expects the new store to generate annual cash revenues of $$318,000$ and to incur annual cash operating expenses of $$185,000.$ Franklin's average income tax rate is $35$ percent. The company uses straight$-$line depreciation.

Required

Determine the expected annual net cash inflow from operations for each of the first four years after Franklin opens the new store.

Note: Negative amounts should be indicated by a minus sign.

$\backslash$table$[[,$Net cash,Inflow or Outflow$],[$Year $1,,],[$Year $2,,],[$Year $3,,],[$Year $4,,]]$Exercise $10-8$A $($Algo$)$ Determining the cash flow annuity with income tax considerations LO $10-2$

To open a new store, Franklin Tire Company plans to invest $$216,000$ in equipment expected to have a four$-$year useful life and no salvage value. Franklin expects the new store to generate annual cash revenues of $$318,000$ and to incur annual cash operating expenses of $$185,000.$ Franklin's average income tax rate is $35$ percent. The company uses straight$-$line depreciation.

Required

Determine the expected annual net cash inflow from operations for each of the first four years after Franklin opens the new store.

Note: Negative amounts should be indicated by a minus sign.

$\backslash$table$[[,$Net cash,Inflow or Outflow$],[$Year $1,,],[$Year $2,,],[$Year $3,,],[$Year $4,,]]$